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What is sensex? How it is calculated?

Answers were Sorted based on User's Feedback



What is sensex? How it is calculated?..

Answer / chandu

sensex is nothing but sensitivity of market. it is
calculated on the basis of free-flot market capitaliasation
of 30 companies.

Is This Answer Correct ?    29 Yes 7 No

What is sensex? How it is calculated?..

Answer / manoj dinodia

Sensex is an abreviation of Sensitive Index - the benchmark
index of BSE. The index is calculated based on a free-float
capitalization method when weighting the effect of a
company on the index.The free-float method, therefore, does
not include restricted stocks, such as those held by
company insiders that can't be readily sold.

Is This Answer Correct ?    22 Yes 4 No

What is sensex? How it is calculated?..

Answer / fasihuddin

The Sensex is an "index". What is an index? An index is
basically an indicator. It gives you a general idea about
whether most of the stocks have gone up or most of the
stocks have gone down.

The Sensex is an indicator of all the major companies of
the BSE.

The Nifty is an indicator of all the major companies of the
NSE.

If the Sensex goes up, it means that the prices of the
stocks of most of the major companies on the BSE have gone
up. If the Sensex goes down, this tells you that the stock
price of most of the major stocks on the BSE have gone
down.

Just like the Sensex represents the top stocks of the BSE,
the Nifty represents the top stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay Stock
Exchange and the NSE is the National Stock Exchange. The
BSE is situated at Bombay and the NSE is situated at Delhi.

Is This Answer Correct ?    13 Yes 2 No

What is sensex? How it is calculated?..

Answer / vijay

sensex anonym was sensitivity index it is an index of top
30companies which are performing at bse

Is This Answer Correct ?    9 Yes 2 No

What is sensex? How it is calculated?..

Answer / shahid

how to calculated sensex

Is This Answer Correct ?    2 Yes 0 No

What is sensex? How it is calculated?..

Answer / lakshmi

It is a company share.and it is calculated using the formula

Is This Answer Correct ?    0 Yes 0 No

What is sensex? How it is calculated?..

Answer / pratik

Sensex is the benchmark of Indian stock markets that is
sensitive index it is calculated on the basis of free float
market capitalization as other indexes do.

Is This Answer Correct ?    7 Yes 9 No

What is sensex? How it is calculated?..

Answer / bhanu ranjan

this is calculated by a formula which u all dont know.

Is This Answer Correct ?    1 Yes 3 No

What is sensex? How it is calculated?..

Answer / sait

sensex usedin bombaystock exchang it mean sensitve intex
it basically select on all sector on top30 bluechip company
based

Is This Answer Correct ?    0 Yes 3 No

What is sensex? How it is calculated?..

Answer / himanshu

Sensex measures the senitivity of the stock market and
which is calculated on the basis of price fluctuations of
30 listed cos in the market.

Is This Answer Correct ?    1 Yes 5 No

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Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?

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